04/29/2021 | Press release | Distributed by Public on 04/29/2021 10:17
CBRE Q1 2021 Supplemental Disclosure |
Local currency percent changes are non-GAAP measures. These percent changes are calculated by comparing current year quarter results at |
prior year quarter exchange rates versus prior year quarter results. For example, Q1 2021 compares to Q1 2020 results at Q1 2020 exchange rates. |
Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the |
absolute figures. |
Estimated Financial Bridges to Revised Financial Presentation Metrics | |||||||||||
Effective January 1, 2021, CBRE made the following changes to its reporting of financial results: - Established a new measurement of profit and loss at the business segment level, referred to as segment operating profit. This measure isolates corporate and other overhead costs as well as certain strategic equity investments that are not driven by the three operating segments into a new segment, called Corporate and Other. Previously, corporate and other overhead costs were reported primarily within the Advisory Services segment. - Included all project management revenue and expenses in the Global Workplace Solutions segment. Previously, project management was divided between the Global Workplace Solutions and the Advisory Services segments. - Included all revenue and expenses for leasing and sales in the Advisory Services segment. Previously, a portion of leasing and sales was reported in the Global Workplace Solutions segment. - Adopted net revenue as a non-GAAP financial metric. Net revenue is gross revenue less pass through costs largely associated with subcontracted vendor work performed for clients, which generally has no margin. Prior to 2021, the company utilized fee revenue to analyze its overall financial performance. Fee revenue excluded subcontracted vendor work and additional reimbursed costs, primarily related to employees dedicated to clients, some of which included minimal margin. The estimated bridges below are being provided only this quarter for comparability purposes. Legacy financial metrics and presentation will not be provided going forward. | |||||||||||
Segment Level Revenue Bridge1 | Revenue Component Bridge | ||||||||||
As Presented | Changes to Presentation | Prior Presentation Methodology | Revenue | Pass Through Costs also Recognized as Revenue1 | Net Revenue1 | Client reimburse employee & other costs1 | Fee Revenue1 | Estimated Impacts of Project Management, GWS Transactions and Corporate Segment Presentation Changes1,2 | Prior Presentation Methodology Fee Revenue1 | ||
Q1 2021 | Q1 2021 | Advisory | $1,708 | ($19) | $1,689 | ($177) | $1,513 | $85 | $1,597 | ||
Advisory | $1,708 | $158 | $1,866 | GWS | 4,026 | (2,561) | 1,465 | (498) | 967 | (91) | 876 |
GWS | 4,026 | (164) | 3,862 | REI | 211 | 211 | 211 | 211 | |||
REI | 211 | (0) | 211 | Corporate | (6) | (6) | (6) | 6 | 0 | ||
Corporate Overhead | (6) | 6 | 0 | Total | $5,939 | ($2,580) | $3,359 | ($675) | $2,684 | $0 | $2,684 |
Total Revenue | $5,939 | $0 | $5,939 | 1. Note that these figures have been estimated. We are providing these estimated financial metrics to provide insight into the business as the Company adopts new financial measures. | |||||||
2. These figures have been rounded. | |||||||||||
Segment Level Profitability Bridge1 | |||||||||||
As Presented | Changes to Presentation | Prior Presentation Methodology | |||||||||
Q1 2021 | Q1 2021 | ||||||||||
Advisory | $332 | ($42) | $290 | ||||||||
GWS | 152 | (7) | 145 | ||||||||
REI | 61 | (5) | 56 | ||||||||
Corporate Overhead | (54) | 54 | 0 | ||||||||
Total Adjusted EBITDA | $491 | $0 | $491 | ||||||||
' |
Operating Results | ||||||||
(in millions, except per share data) | ||||||||
For The Three Months Ended March 31, 2021 | ||||||||
GAAP Consolidated | Depreciation & Amortization | Fair value adjustments to real estate assets acquired in the Telford Acquisition that were sold in period | Carried Interest | Write-off of financing costs on extinguished debt | Tax impact of adjusted items | Adjusted Consolidated | ||
Fee revenue | $ 2,684.0 | $ 2,684.0 | ||||||
Client reimbursed employee & other costs | 675.0 | 675.0 | ||||||
Net revenue | 3,359.0 | 3,359.0 | ||||||
Pass through costs also recognized as revenue | 2,579.9 | 2,579.9 | ||||||
Total revenue | 5,938.9 | 5,938.9 | ||||||
Cost of revenue | 4,719.5 | (0.7) | 4,718.8 | |||||
Operating, administrative and other | 828.3 | (15.3) | 813.0 | |||||
Depreciation and amortization | 122.1 | (18.4) | 103.7 | |||||
Asset impairments | -0 | -0 | ||||||
Total costs and expenses | 5,669.9 | (18.4) | (0.7) | (15.3) | -0 | 5,635.5 | ||
Gain on disposition of real estate | 0.2 | 0.2 | ||||||
Operating income | 269.2 | 18.4 | 0.7 | 15.3 | -0 | 303.6 | ||
Equity income from unconsolidated subsidiaries | 83.5 | 0.4 | 83.9 | |||||
Other income | 2.7 | 2.7 | ||||||
Interest expense, net of interest income | 10.1 | 10.1 | ||||||
Write-off of financing costs on extinguished debt | -0 | -0 | ||||||
Income before provision for income taxes | 345.3 | 18.4 | 1.1 | 15.3 | -0 | -0 | 380.1 | |
Provision for income taxes | 76.3 | 8.5 | 84.8 | |||||
Tax rate (1) | 22.1% | 22.3% | ||||||
Net income | 269.0 | 18.4 | 1.1 | 15.3 | -0 | (8.5) | -0 | 295.3 |
Less: Net income attributable to non-controlling interests | 2.8 | 2.8 | ||||||
Net income attributable to CBRE Group, Inc. | $ 266.2 | $ 18.4 | $ 1.1 | $ 15.3 | $ -0 | $ (8.5) | $ 292.5 | |
Add: | ||||||||
Interest expense, net of interest income | 10.1 | 10.1 | ||||||
Write-off of financing costs on extinguished debt | -0 | -0 | -0 | |||||
Provision for income taxes | 76.3 | 8.5 | 84.8 | |||||
Depreciation and amortization | 122.1 | (18.4) | 103.7 | |||||
Asset impairments | -0 | -0 | -0 | |||||
EBITDA | $ 474.7 | $ -0 | $ 1.1 | $ 15.3 | $ -0 | $ -0 | $ 491.1 | |
Weighted avg. shares outstanding for diluted EPS | 339.6 | 339.6 | ||||||
Diluted EPS attributed to CBRE Group, Inc. | $ 0.78 | $ 0.86 | ||||||
(1) Prior to Q3 2020, calculation of tax rate adjusts profit before taxes to remove the portion attributable to non-controlling interests. |
Segment Results | |||||
($ in millions) | |||||
For The Three Months Ended March 31, 2021 | |||||
Global | Corporate, | ||||
Advisory | Workplace | Real Estate | Other and | ||
Services | Solutions | Investments | Eliminations | Consolidated | |
Revenue: | |||||
Fee revenue | $ 1,512.5 | $ 966.5 | $ 211.1 | $ (6.1) | $ 2,684.0 |
Client reimbursed employee & other costs | 176.9 | 498.1 | -0 | -0 | 675.0 |
Net revenue | 1,689.4 | 1,464.6 | 211.1 | (6.1) | 3,359.0 |
Pass through costs also recognized as revenue | 18.6 | 2,561.3 | -0 | -0 | 2,579.9 |
Total revenue | 1,708.0 | 4,025.9 | 211.1 | (6.1) | 5,938.9 |
Costs and expenses: | |||||
Cost of revenue | 987.5 | 3,697.8 | 41.0 | (6.8) | 4,719.5 |
Operating, administrative and other | 388.6 | 176.0 | 181.0 | 82.7 | 828.3 |
Depreciation and amortization | 69.8 | 34.5 | 10.4 | 7.4 | 122.1 |
Asset impairments | -0 | -0 | -0 | -0 | -0 |
Total costs and expenses | 1,445.9 | 3,908.3 | 232.4 | 83.3 | 5,669.9 |
Gain on disposition of real estate | -0 | -0 | 0.2 | -0 | 0.2 |
Operating income | 262.1 | 117.6 | (21.1) | (89.4) | 269.2 |
Equity income (loss) from unconsolidated subsidiaries | 0.7 | (0.2) | 56.9 | 26.1 | 83.5 |
Other income | -0 | 0.3 | 0.4 | 2.0 | 2.7 |
Less: Net income attributable to non-controlling interests | 0.3 | -0 | 2.5 | -0 | 2.8 |
Add-back: Depreciation and amortization | 69.8 | 34.5 | 10.4 | 7.4 | 122.1 |
Asset impairments | -0 | -0 | -0 | -0 | -0 |
EBITDA | 332.3 | 152.2 | 44.1 | (53.9) | 474.7 |
Adjustments: | |||||
Carried interest incentive compensation expense to align with the timing of associated revenue | -0 | -0 | 15.3 | - 0 | 15.3 |
Impact of fair value adjustments to real estate assets acquired in the Telford Acquisition (purchase accounting) that were sold in period | -0 | -0 | 1.1 | - 0 | 1.1 |
Segment operating profit (loss) | 332.3 | 152.2 | 60.5 | (53.9) | |
Adjusted EBITDA | 491.1 |
Segment Revenue Detail History | |||||||||||
($ in millions) | |||||||||||
Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | 2020 | Q1 2021 | |
ADVISORY SERVICES | |||||||||||
Property Management | 393.4 | 399.4 | 398.9 | 444.9 | 1,636.6 | 399.4 | 395.8 | 400.9 | 422.9 | 1,619.0 | 408.6 |
Valuation | 138.4 | 149.1 | 155.1 | 188.4 | 631.0 | 147.7 | 131.8 | 138.9 | 195.6 | 614.0 | 159.6 |
Loan Servicing | 46.0 | 49.7 | 56.6 | 54.4 | 206.7 | 56.7 | 57.1 | 58.0 | 67.9 | 239.7 | 68.8 |
Advisory Leasing | 644.0 | 848.1 | 812.5 | 1,071.3 | 3,375.9 | 625.0 | 521.8 | 549.2 | 764.4 | 2,460.4 | 520.2 |
Advisory Sales | 388.5 | 479.9 | 530.5 | 765.7 | 2,164.6 | 431.7 | 243.0 | 348.2 | 641.0 | 1,663.9 | 392.3 |
Commercial Mortgage Origination | 120.9 | 140.0 | 163.8 | 151.2 | 575.9 | 123.1 | 100.4 | 129.0 | 225.3 | 577.8 | 139.9 |
Total net revenue | 1,731.2 | 2,066.2 | 2,117.4 | 2,675.9 | 8,590.7 | 1,783.6 | 1,449.9 | 1,624.2 | 2,317.1 | 7,174.8 | 1,689.4 |
Pass through costs also recognized as revenue | 13.2 | 17.3 | 16.4 | 17.0 | 63.9 | 19.1 | 4.3 | 5.8 | 10.7 | 39.9 | 18.6 |
Total revenue | 1,744.4 | 2,083.5 | 2,133.8 | 2,692.9 | 8,654.6 | 1,802.7 | 1,454.2 | 1,630.0 | 2,327.8 | 7,214.7 | 1,708.0 |
GLOBAL WORKPLACE SOLUTIONS | |||||||||||
Total fee revenue | 753.4 | 821.6 | 857.1 | 963.4 | 3,395.5 | 896.3 | 834.7 | 923.8 | 1,006.0 | 3,660.8 | 966.5 |
Client reimbursed employee & other costs | 461.0 | 500.8 | 532.0 | 562.2 | 2,056.0 | 549.4 | 546.4 | 536.7 | 518.9 | 2,151.4 | 498.1 |
Total net revenue | 1,214.4 | 1,322.4 | 1,389.1 | 1,525.6 | 5,451.5 | 1,445.7 | 1,381.1 | 1,460.5 | 1,524.9 | 5,812.2 | 1,464.6 |
Pass through costs also recognized as revenue | 2,047.1 | 2,162.9 | 2,277.2 | 2,663.2 | 9,150.4 | 2,438.8 | 2,389.4 | 2,390.8 | 2,776.8 | 9,995.8 | 2,561.3 |
Total revenue | 3,261.5 | 3,485.3 | 3,666.3 | 4,188.8 | 14,601.9 | 3,884.5 | 3,770.5 | 3,851.3 | 4,301.7 | 15,808.0 | 4,025.9 |
REAL ESTATE INVESTMENTS | |||||||||||
Development Revenue | 28.9 | 48.0 | 24.3 | 134.5 | 235.7 | 89.8 | 58.5 | 69.7 | 138.5 | 356.5 | 79.0 |
Asset management | 88.3 | 89.6 | 88.9 | 92.2 | 359.0 | 96.1 | 91.7 | 95.4 | 106.4 | 389.6 | 111.3 |
Acquisition, disposition, incentive & other | 8.4 | 10.7 | 6.3 | 10.2 | 35.6 | 7.3 | 5.0 | 5.5 | 12.4 | 30.2 | 16.2 |
Carried interest | 9.6 | 1.4 | 9.7 | 9.7 | 30.4 | 18.3 | 6.4 | (1.0) | 31.5 | 55.2 | 4.6 |
Total revenue | 135.2 | 149.7 | 129.2 | 246.6 | 660.7 | 211.5 | 161.6 | 169.6 | 288.8 | 831.5 | 211.1 |
Less: Cost of revenue | -0 | -0 | -0 | 85.0 | 85.0 | 55.1 | 30.0 | 40.4 | 48.1 | 173.6 | 41.0 |
Add: Gain (loss) on disposition of real estate | 19.2 | -0 | -0 | 0.6 | 19.8 | 22.8 | (0.5) | 52.8 | 12.7 | 87.8 | 0.2 |
Add: Equity income from unconsolidated subsidiaries | 72.8 | 19.0 | 21.9 | 41.8 | 155.5 | 18.9 | 21.3 | 30.9 | 52.4 | 123.5 | 56.9 |
Less: Non-controlling interests income (loss) | 6.7 | (0.3) | 1.0 | 1.0 | 8.4 | 1.1 | -0 | 0.5 | 1.3 | 2.9 | 2.5 |
Add: Purchase accounting step up impact | -0 | -0 | -0 | 9.3 | 9.3 | 5.8 | 1.2 | 2.3 | 2.3 | 11.6 | 1.1 |
Total adjusted revenue | 220.5 | 169.0 | 150.1 | 212.3 | 751.9 | 202.8 | 153.6 | 214.7 | 306.8 | 877.9 | 225.8 |
ADVISORY SERVICES ($USD VS. PRIOR YEAR) | |||||||||||
Property Management | 1.5% | -0.9% | 0.5% | -4.9% | -1.1% | 2.3% | |||||
Valuation | 6.7% | -11.6% | -10.4% | 3.8% | -2.7% | 8.1% | |||||
Loan Servicing | 23.3% | 14.9% | 2.5% | 24.8% | 16.0% | 21.3% | |||||
Advisory Leasing | -3.0% | -38.5% | -32.4% | -28.6% | -27.1% | -16.8% | |||||
Advisory Sales | 11.1% | -49.4% | -34.4% | -16.3% | -23.1% | -9.1% | |||||
Commercial Mortgage Origination | 1.8% | -28.3% | -21.2% | 49.0% | 0.3% | 13.6% | |||||
Total net revenue | 3.0% | -29.8% | -23.3% | -13.4% | -16.5% | -5.3% | |||||
GLOBAL WORKPLACE SOLUTIONS ($USD VS. PRIOR YEAR) | |||||||||||
Total net revenue | 19.0% | 4.4% | 5.1% | -0.0% | 6.6% | 1.3% | |||||
REAL ESTATE INVESTMENTS ($USD VS. PRIOR YEAR) | |||||||||||
Development Revenue | 210.7% | 21.9% | 186.8% | 3.0% | 51.3% | -12.0% | |||||
Asset management | 8.8% | 2.3% | 7.3% | 15.4% | 8.5% | 15.8% | |||||
Acquisition, disposition, incentive & other | -13.1% | -53.3% | -12.7% | 21.6% | -15.2% | 121.9% | |||||
Carried interest | 90.6% | 357.1% | -110.3% | 224.7% | 81.6% | -74.9% | |||||
Total revenue | 56.4% | 7.9% | 31.3% | 17.1% | 25.9% | -0.2% | |||||
Less: Cost of revenue | 100.0% | 100.0% | 100.0% | 43.4% | -104.2% | 25.6% | |||||
Add: Gain (loss) on disposition of real estate | 18.8% | -100.0% | n/m | n/m | 343.4% | -99.1% | |||||
Add: Equity income from unconsolidated subsidiaries | -74.0% | 12.1% | 41.1% | 25.4% | -20.6% | 201.1% | |||||
Less: Non-controlling interests income (loss) | -83.6% | -100.0% | -50.0% | 30.0% | -65.5% | 127.3% | |||||
Add: Purchase accounting step up impact | 100.0% | 100.0% | 100.0% | -75.3% | 24.7% | -81.0% | |||||
Total adjusted revenue | -8.0% | -9.1% | 43.0% | 44.5% | 16.8% | 11.3% | |||||
ADVISORY SERVICES (LOCAL CURRENCY VS. PRIOR YEAR) | |||||||||||
Property Management | 2.7% | 1.2% | -0.4% | -6.6% | -0.9% | -0.8% | |||||
Valuation | 8.2% | -9.1% | -11.5% | 1.5% | -2.8% | 3.2% | |||||
Loan Servicing | 23.3% | 15.3% | 2.1% | 24.1% | 15.7% | 20.5% | |||||
Advisory Leasing | -2.5% | -37.6% | -32.4% | -29.2% | -27.0% | -18.0% | |||||
Advisory Sales | 11.6% | -48.4% | -34.8% | -17.5% | -23.4% | -10.9% | |||||
Commercial Mortgage Origination | 1.9% | -28.2% | -21.3% | 48.8% | 0.3% | 13.4% | |||||
Total net revenue | 3.7% | -28.6% | -23.7% | -14.4% | -16.5% | -7.3% | |||||
GLOBAL WORKPLACE SOLUTIONS (LOCAL CURRENCY VS. PRIOR YEAR) | |||||||||||
Total net revenue | 19.9% | 6.2% | 4.2% | -1.3% | 6.7% | -1.0% | |||||
REAL ESTATE INVESTMENTS (LOCAL CURRENCY VS. PRIOR YEAR) | |||||||||||
Development Revenue | 210.7% | 22.1% | 186.4% | 2.5% | 50.8% | -14.8% | |||||
Asset management | 9.9% | 4.7% | 4.4% | 12.0% | 7.8% | 10.3% | |||||
Acquisition, disposition, incentive & other | -13.1% | -53.7% | -15.9% | 19.6% | -15.5% | 117.8% | |||||
Carried interest | 90.6% | 364.3% | -110.3% | 216.5% | 78.7% | -74.9% | |||||
Total revenue | 57.1% | 9.4% | 29.0% | 15.2% | 25.2% | -4.0% | |||||
Less: Cost of revenue | 100.0% | 100.0% | 100.0% | -44.1% | 103.5% | -29.3% | |||||
Add: Gain (loss) on disposition of real estate | 18.8% | -100.0% | n/m | n/m | 343.4% | -99.1% | |||||
Add: Equity income from unconsolidated subsidiaries | -74.0% | 12.1% | 41.6% | 25.4% | -20.6% | 194.2% | |||||
Less: Non-controlling interests income (loss) | -83.6% | -100.0% | -40.0% | 30.0% | -63.9% | 127.3% | |||||
Add: Purchase accounting step up impact | 100.0% | 100.0% | 100.0% | -74.2% | 36.6% | -81.0% | |||||
Total adjusted revenue | -7.6% | -7.1% | 41.0% | 42.6% | 16.4% | 7.7% |
Real Estate Investments Segment Detail | |||||||||||
Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | 2020 | Q1 2021 | |
Development Services: | |||||||||||
Pipeline ($ in billions) (1) | 2.8 | 2.5 | 3.5 | 5.8 | 5.8 | 5.8 | 6.1 | 5.9 | 6.1 | 6.1 | 6.8 |
In-Process ($ in billions) (2) | 9.7 | 10.6 | 10.9 | 13.0 | 13.0 | 13.9 | 13.7 | 14.8 | 14.9 | 14.9 | 15.0 |
Guarantees ($ in millions) (3) | 9.5 | 9.2 | 6.6 | 28.5 | 28.5 | 25.4 | 26.1 | 20.8 | 23.4 | 23.4 | 11.7 |
Investment Management: | |||||||||||
Assets under management ($ in billions) | 107.2 | 106.7 | 106.2 | 112.9 | 112.9 | 108.1 | 109.6 | 114.5 | 122.7 | 122.7 | 124.5 |
Capital available to deploy ($ in billions) (4) | 7.5 | 6.9 | 7.6 | 9.6 | 9.6 | 10.0 | 10.1 | 10.0 | 10.9 | 10.9 | 12.0 |
Co-Investments: | |||||||||||
Development services line of business ($ in millions) | 106.6 | 109.2 | 117.8 | 188.7 | 188.7 | 192.2 | 205.3 | 241.3 | 259.9 | 259.9 | 266.6 |
Investment management line of business ($ in millions) | 184.2 | 177.4 | 185.5 | 189.5 | 189.5 | 176.9 | 146.7 | 144.3 | 150.2 | 150.2 | 180.8 |
(1) Pipeline deals are projects we are pursuing which we believe have a greater than 50% chance of closing or where land has been acquired and the projected construction start is more than 12 months out. | |||||||||||
(2) In Process figures include Long-Term Operating Assets (LTOA). LTOA are projects that have achieved a stabilized level of occupancy or have been held 18-24 months following shell completion or acquisition. | |||||||||||
(3) Beginning in Q4 2019, includes guarantees associated with Telford Homes, which we acquired on October 1, 2019. | |||||||||||
(4) Excludes securities business. |
Segment Operating Profit Detail History | |||||||||||
($ in millions) | |||||||||||
Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | 2020 | Q1 2021 | |
CBRE SEGMENT TOTAL | |||||||||||
Fee revenue | 2,428.7 | 2,849.5 | 2,910.5 | 3,672.2 | 11,860.9 | 2,693.3 | 2,256.0 | 2,528.5 | 3,413.0 | 10,890.8 | 2,684.0 |
Client reimbursed employee & other costs | 646.5 | 684.4 | 721.0 | 767.1 | 2,819.0 | 738.0 | 731.7 | 720.0 | 710.0 | 2,899.7 | 675.0 |
Total net revenue | 3,075.2 | 3,533.9 | 3,631.5 | 4,439.3 | 14,679.9 | 3,431.3 | 2,987.7 | 3,248.5 | 4,123.0 | 13,790.5 | 3,359.0 |
Pass through costs also recognized as revenue | 2,060.3 | 2,180.2 | 2,293.6 | 2,680.1 | 9,214.2 | 2,457.9 | 2,393.7 | 2,396.6 | 2,787.5 | 10,035.7 | 2,579.9 |
Total revenue | 5,135.5 | 5,714.1 | 5,925.1 | 7,119.4 | 23,894.1 | 5,889.2 | 5,381.4 | 5,645.1 | 6,910.5 | 23,826.2 | 5,938.9 |
Cost of revenue | 4,022.0 | 4,445.8 | 4,687.3 | 5,533.8 | 18,688.9 | 4,712.7 | 4,399.5 | 4,564.6 | 5,370.8 | 19,047.6 | 4,719.5 |
Operating, administrative and other | 792.9 | 877.4 | 809.6 | 956.1 | 3,436.0 | 790.1 | 770.8 | 794.2 | 951.1 | 3,306.2 | 828.3 |
Depreciation and amortization | 105.8 | 106.5 | 111.6 | 115.4 | 439.3 | 113.8 | 116.4 | 127.7 | 143.8 | 501.7 | 122.1 |
Asset impairments | 89.0 | - 0 | - 0 | 0.8 | 89.8 | 75.2 | - 0 | - 0 | 13.5 | 88.7 | - 0 |
Total costs and expenses | 5,009.7 | 5,429.7 | 5,608.5 | 6,606.1 | 22,654.0 | 5,691.8 | 5,286.7 | 5,486.5 | 6,479.2 | 22,944.2 | 5,669.9 |
Gain (loss) on disposition of real estate | 19.2 | - 0 | - 0 | 0.5 | 19.7 | 22.8 | (0.5) | 52.8 | 12.7 | 87.8 | 0.2 |
Operating income | 145.0 | 284.4 | 316.6 | 513.8 | 1,259.8 | 220.2 | 94.2 | 211.4 | 444.0 | 969.8 | 269.2 |
Equity income from unconsolidated subsidiaries | 72.7 | 21.8 | 25.8 | 40.7 | 161.0 | 20.6 | 19.5 | 32.4 | 53.7 | 126.2 | 83.5 |
Other income (loss) | 20.8 | 4.3 | 0.9 | 2.7 | 28.7 | (0.1) | 5.2 | 7.9 | 4.4 | 17.3 | 2.7 |
Less: Net income (loss) attributable to non-controlling interests | 6.4 | (0.3) | 1.4 | 1.5 | 9.0 | 1.3 | 0.2 | 0.7 | 1.7 | 3.8 | 2.8 |
Add-back: Depreciation and amortization | 105.8 | 106.5 | 111.6 | 115.4 | 439.3 | 113.8 | 116.4 | 127.7 | 143.8 | 501.7 | 122.1 |
Add-back: Asset impairments | 89.0 | - 0 | - 0 | 0.8 | 89.8 | 75.2 | - 0 | - 0 | 13.5 | 88.7 | - 0 |
EBITDA | 426.9 | 417.3 | 453.5 | 671.9 | 1,969.6 | 428.4 | 235.1 | 378.7 | 657.7 | 1,699.9 | 474.7 |
Adjustments (1) | 23.1 | 51.2 | 1.1 | 18.8 | 94.2 | 2.0 | 32.2 | 63.1 | 95.3 | 192.6 | 16.4 |
Adjusted EBITDA | 450.0 | 468.5 | 454.6 | 690.7 | 2,063.8 | 430.4 | 267.3 | 441.8 | 753.0 | 1,892.5 | 491.1 |
Adjusted EBITDA margin (net revenue) | 14.6% | 13.3% | 12.5% | 15.6% | 14.1% | 12.5% | 8.9% | 13.6% | 18.3% | 13.7% | 14.6% |
ADVISORY SERVICES | |||||||||||
Fee revenue | 1,540.0 | 1,876.6 | 1,927.3 | 2,469.1 | 7,813.0 | 1,591.7 | 1,260.7 | 1,437.2 | 2,121.9 | 6,411.5 | 1,512.5 |
Client reimbursed employee & other costs | 191.2 | 189.6 | 190.1 | 206.8 | 777.7 | 191.9 | 189.2 | 187.0 | 195.2 | 763.3 | 176.9 |
Total net revenue | 1,731.2 | 2,066.2 | 2,117.4 | 2,675.9 | 8,590.7 | 1,783.6 | 1,449.9 | 1,624.2 | 2,317.1 | 7,174.8 | 1,689.4 |
Pass through costs also recognized as revenue | 13.2 | 17.3 | 16.4 | 16.9 | 63.8 | 19.1 | 4.3 | 5.8 | 10.7 | 39.9 | 18.6 |
Total revenue | 1,744.4 | 2,083.5 | 2,133.8 | 2,692.8 | 8,654.5 | 1,802.7 | 1,454.2 | 1,630.0 | 2,327.8 | 7,214.7 | 1,708.0 |
Cost of revenue | 1,010.1 | 1,237.9 | 1,281.8 | 1,600.6 | 5,130.4 | 1,054.2 | 889.7 | 986.7 | 1,382.8 | 4,313.4 | 987.5 |
Operating, administrative and other | 418.0 | 453.8 | 449.7 | 515.3 | 1,836.8 | 419.2 | 376.4 | 384.6 | 489.4 | 1,669.6 | 388.6 |
Depreciation and amortization | 64.4 | 67.2 | 71.3 | 72.4 | 275.3 | 70.7 | 72.2 | 80.4 | 88.3 | 311.6 | 69.8 |
Total costs and expenses | 1,492.5 | 1,758.9 | 1,802.8 | 2,188.3 | 7,242.5 | 1,544.1 | 1,338.3 | 1,451.7 | 1,960.5 | 6,294.6 | 1,445.9 |
Gain on disposition of real estate | - 0 | - 0 | - 0 | - 0 | |||||||
- 0 | - 0 | - 0 | - 0 | ||||||||
Operating income | 251.9 | 324.6 | 331.0 | 504.5 | 1,412.0 | 258.6 | 115.9 | 178.3 | 367.3 | 920.1 | 262.1 |
- 0 | - 0 | - 0 | - 0 | ||||||||
Equity income (loss) from unconsolidated subsidiaries | 1.0 | 1.7 | 1.3 | (0.9) | 3.1 | 1.0 | 1.3 | 1.2 | 1.0 | 4.5 | 0.7 |
Other income (loss) | - 0 | - 0 | - 0 | - 0 | - 0 | 2.9 | 0.2 | 0.6 | 0.3 | 4.0 | -0 |
Less: Net income (loss) attributable to non-controlling interests | (0.1) | 0.1 | 0.3 | 0.5 | 0.8 | 0.2 | 0.2 | 0.1 | 0.4 | 0.9 | 0.3 |
Add-back: Depreciation and amortization | 64.5 | 67.1 | 71.3 | 72.3 | 275.2 | 70.6 | 72.2 | 80.4 | 88.2 | 311.4 | 69.8 |
EBITDA | 317.5 | 393.3 | 403.3 | 575.4 | 1,689.5 | 332.9 | 189.4 | 260.4 | 456.4 | 1,239.1 | 332.3 |
Adjustments (1) | - 0 | 0.3 | - 0 | - 0 | 0.3 | -0 | 12.6 | 26.5 | 69.0 | 108.1 | -0 |
Segment Operating Profit | 317.5 | 393.6 | 403.3 | 575.4 | 1,689.8 | 332.9 | 202.0 | 286.9 | 525.4 | 1,347.2 | 332.3 |
Segment Operating Profit margin (revenue) | 18.2% | 18.9% | 18.9% | 21.4% | 19.5% | 18.5% | 13.9% | 17.6% | 22.6% | 18.7% | 19.5% |
Segment Operating Profit margin (net revenue) | 18.3% | 19.0% | 19.0% | 21.5% | 19.7% | 18.7% | 13.9% | 17.7% | 22.7% | 18.8% | 19.7% |
GLOBAL WORKPLACE SOLUTIONS | |||||||||||
Fee revenue | 753.4 | 821.6 | 857.1 | 963.4 | 3,395.5 | 896.3 | 834.7 | 923.8 | 1,006.0 | 3,660.8 | 966.5 |
Client reimbursed employee & other costs | 461.0 | 500.8 | 532.0 | 562.2 | 2,056.0 | 549.4 | 546.4 | 536.7 | 518.9 | 2,151.4 | 498.1 |
Total net revenue | 1,214.4 | 1,322.4 | 1,389.1 | 1,525.6 | 5,451.5 | 1,445.7 | 1,381.1 | 1,460.5 | 1,524.9 | 5,812.2 | 1,464.6 |
Pass through costs also recognized as revenue | 2,047.1 | 2,162.9 | 2,277.2 | 2,663.2 | 9,150.4 | 2,438.8 | 2,389.4 | 2,390.8 | 2,776.8 | 9,995.8 | 2,561.3 |
Total revenue | 3,261.5 | 3,485.3 | 3,666.3 | 4,188.8 | 14,601.9 | 3,884.5 | 3,770.5 | 3,851.3 | 4,301.7 | 15,808.0 | 4,025.9 |
Cost of revenue | 3,017.3 | 3,215.5 | 3,404.0 | 3,848.6 | 13,485.4 | 3,611.6 | 3,483.4 | 3,540.9 | 3,946.1 | 14,582.0 | 3,697.8 |
Operating, administrative and other | 146.8 | 184.6 | 151.6 | 193.7 | 676.7 | 166.7 | 163.9 | 167.0 | 197.6 | 695.2 | 176.0 |
Depreciation and amortization | 31.9 | 32.3 | 32.1 | 34.1 | 130.4 | 32.4 | 32.5 | 33.8 | 35.6 | 134.3 | 34.5 |
Asset impairments | - 0 | - 0 | - 0 | - 0 | - 0 | 50.2 | - 0 | - 0 | - 0 | 50.2 | - 0 |
Total costs and expenses | 3,196.0 | 3,432.4 | 3,587.7 | 4,076.4 | 14,292.5 | 3,860.9 | 3,679.8 | 3,741.7 | 4,179.3 | 15,461.7 | 3,908.3 |
Gain on disposition of real estate | - 0 | - 0 | - 0 | - 0 | |||||||
- 0 | - 0 | - 0 | - 0 | ||||||||
Operating income | 65.5 | 52.9 | 78.6 | 112.4 | 309.4 | 23.6 | 90.7 | 109.6 | 122.4 | 346.3 | 117.6 |
- 0 | - 0 | - 0 | - 0 | ||||||||
Equity income (loss) from unconsolidated subsidiaries | (0.7) | (0.2) | 0.4 | (0.4) | (0.9) | 0.5 | (0.4) | 0.2 | (0.3) | - 0 | (0.2) |
Other income (loss) | - 0 | 1.5 | (2.7) | 0.1 | (1.1) | 0.2 | (0.1) | - 0 | 1.0 | 1.1 | 0.3 |
Less: Net (loss) income attributable to non-controlling interests | (0.2) | (0.1) | 0.1 | - 0 | (0.2) | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Add-back: Depreciation and amortization | 31.9 | 32.3 | 32.1 | 34.1 | 130.4 | 32.4 | 32.5 | 33.8 | 35.6 | 134.3 | 34.5 |
Add-back: Asset impairments | - 0 | - 0 | - 0 | - 0 | - 0 | 50.2 | - 0 | - 0 | - 0 | 50.2 | - 0 |
EBITDA | 96.9 | 86.6 | 108.3 | 146.2 | 438.0 | 106.9 | 122.7 | 143.6 | 158.7 | 531.9 | 152.2 |
Adjustments (1) | 8.9 | 29.4 | - 0 | - 0 | 38.3 | - 0 | 5.0 | 17.1 | 21.1 | 43.2 | - 0 |
Segment Operating Profit | 105.8 | 116.0 | 108.3 | 146.2 | 476.3 | 106.9 | 127.7 | 160.7 | 179.8 | 575.1 | 152.2 |
Segment Operating Profit margin (revenue) | 3.2% | 3.3% | 3.0% | 3.5% | 3.3% | 2.8% | 3.4% | 4.2% | 4.2% | 3.6% | 3.8% |
Segment Operating Profit margin (net revenue) | 8.7% | 8.8% | 7.8% | 9.6% | 8.7% | 7.4% | 9.2% | 11.0% | 11.8% | 9.9% | 10.4% |
REAL ESTATE INVESTMENTS | |||||||||||
Total revenue | 135.2 | 149.7 | 129.2 | 246.6 | 660.7 | 211.5 | 161.6 | 169.6 | 288.8 | 831.5 | 211.1 |
Cost of revenue | - 0 | - 0 | - 0 | 85.0 | 85.0 | 55.0 | 30.0 | 40.4 | 48.1 | 173.5 | 41.0 |
Operating, administrative and other | 155.2 | 149.4 | 131.8 | 165.0 | 601.4 | 150.2 | 127.6 | 147.7 | 183.7 | 609.2 | 181.0 |
Depreciation and amortization | 4.7 | 1.9 | 2.6 | 4.3 | 13.5 | 4.4 | 4.7 | 5.9 | 12.3 | 27.3 | 10.4 |
Asset impairments | 89.0 | - 0 | - 0 | 0.8 | 89.8 | 25.0 | - 0 | - 0 | 13.5 | 38.5 | - 0 |
Total costs and expenses | 248.9 | 151.3 | 134.4 | 255.1 | 789.7 | 234.6 | 162.3 | 194.0 | 257.6 | 848.5 | 232.4 |
Gain (loss) on disposition of real estate | 19.2 | - 0 | - 0 | 0.5 | 19.7 | 22.8 | (0.5) | 52.8 | 12.7 | 87.8 | 0.2 |
- 0 | - 0 | - 0 | - 0 | ||||||||
Operating income (loss) | (94.5) | (1.7) | (5.1) | (7.9) | (109.2) | (0.4) | (1.2) | 28.5 | 43.9 | 70.8 | (21.1) |
- 0 | - 0 | - 0 | - 0 | ||||||||
Equity income from unconsolidated subsidiaries | 72.8 | 18.9 | 21.9 | 41.8 | 155.4 | 18.9 | 21.3 | 31.0 | 52.4 | 123.6 | 56.9 |
Other income (loss) | 19.2 | 1.4 | 1.4 | 0.6 | 22.6 | (2.6) | 0.7 | 0.1 | 0.7 | (1.1) | 0.4 |
Less: Net income (loss) attributable to non-controlling interests | 6.7 | (0.3) | 1.0 | 1.0 | 8.4 | 1.1 | - 0 | 0.6 | 1.3 | 3.0 | 2.5 |
- 0 | - 0 | ||||||||||
Add-back: Depreciation and amortization | 4.7 | 1.9 | 2.6 | 4.3 | 13.5 | 4.4 | 4.7 | 5.9 | 12.3 | 27.3 | 10.4 |
Add-back: Asset impairments | 89.0 | - 0 | - 0 | 0.8 | 89.8 | 25.0 | - 0 | - 0 | 13.5 | 38.5 | - 0 |
EBITDA | 84.5 | 20.8 | 19.8 | 38.6 | 163.7 | 44.2 | 25.5 | 64.9 | 121.5 | 256.1 | 44.1 |
Adjustments (1) | 7.5 | 17.1 | 1.1 | 11.9 | 37.6 | (1.2) | (0.9) | 6.6 | (5.8) | (1.3) | 16.4 |
Segment Operating Profit | 92.0 | 37.9 | 20.9 | 50.5 | 201.3 | 43.0 | 24.6 | 71.5 | 115.7 | 254.8 | 60.5 |
Segment Operating Profit margin (revenue) | 68.0% | 25.3% | 16.2% | 20.5% | 30.5% | 20.3% | 15.2% | 42.2% | 40.1% | 30.6% | 28.7% |
Adjusted revenue | 220.5 | 169.0 | 150.1 | 212.3 | 751.9 | 202.8 | 153.6 | 214.7 | 306.8 | 877.9 | 225.8 |
Segment Operating Profit margin (adjusted revenue) | 41.7% | 22.4% | 13.9% | 23.8% | 26.8% | 21.2% | 16.0% | 33.3% | 37.7% | 29.0% | 26.8% |
CORPORATE, OTHER AND ELIMINATIONS | |||||||||||
Fee revenue | 0.1 | 1.6 | (3.1) | (6.9) | (8.3) | (6.2) | (1.0) | (2.1) | (3.7) | (13.0) | (6.1) |
Client reimbursed employee & other costs | (5.7) | (6.0) | (1.1) | (1.9) | (14.7) | (3.3) | (3.9) | (3.7) | (4.1) | (15.0) | -0 |
Total net revenue | (5.6) | (4.4) | (4.2) | (8.8) | (23.0) | (9.5) | (4.9) | (5.8) | (7.8) | (28.0) | (6.1) |
Pass through costs also recognized as revenue | - 0 | - 0 | - 0 | - 0 | - 0 | -0 | -0 | -0 | -0 | - 0 | -0 |
Total revenue | (5.6) | (4.4) | (4.2) | (8.8) | (23.0) | (9.5) | (4.9) | (5.8) | (7.8) | (28.0) | (6.1) |
Cost of revenue | (5.4) | (7.6) | 1.5 | (0.4) | (11.9) | (8.1) | (3.6) | (3.4) | (6.2) | (21.3) | (6.8) |
Operating, administrative and other | 72.9 | 89.6 | 76.5 | 82.1 | 321.1 | 54.0 | 102.9 | 94.9 | 80.4 | 332.2 | 82.7 |
Depreciation and amortization | 4.8 | 5.1 | 5.6 | 4.6 | 20.1 | 6.3 | 7.0 | 7.6 | 7.6 | 28.5 | 7.4 |
Asset impairments | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Total costs and expenses | 72.3 | 87.1 | 83.6 | 86.3 | 329.3 | 52.2 | 106.3 | 99.1 | 81.8 | 339.4 | 83.3 |
Gain on disposition of real estate | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Operating loss | (77.9) | (91.6) | (87.9) | (95.1) | (352.3) | (61.7) | (111.2) | (104.8) | (89.5) | (367.4) | (89.4) |
- 0 | - 0 | ||||||||||
Equity income (loss) from unconsolidated subsidiaries | (0.4) | 1.4 | 2.2 | 0.2 | 3.4 | 0.2 | (2.7) | - 0 | 0.6 | (1.9) | 26.1 |
Other income (loss) | 1.6 | 1.4 | 2.2 | 2.0 | 7.2 | (0.6) | 4.4 | 7.2 | 2.4 | 13.4 | 2.0 |
Less: Net (loss) income attributable to non-controlling interests | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Add-back: Depreciation and amortization | 4.8 | 5.1 | 5.6 | 4.6 | 20.1 | 6.3 | 7.0 | 7.6 | 7.6 | 28.5 | 7.4 |
Add-back: Asset impairments | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
EBITDA | (71.9) | (83.7) | (77.9) | (88.3) | (321.6) | (55.8) | (102.5) | (90.0) | (78.9) | (327.4) | (53.9) |
Adjustments (1) | 6.7 | 4.4 | - 0 | 6.9 | 18.0 | 3.2 | 15.5 | 12.9 | 11.0 | 42.6 | - 0 |
Segment Operating Loss | (65.2) | (79.3) | (77.9) | (81.4) | (303.6) | (52.6) | (87.0) | (77.1) | (67.9) | (284.8) | (53.9) |
(1) Adjustments include certain carried interest compensation expense (reversal) to align with the timing of associated revenue, costs associated with our reorganization, including cost-savings initiatives, integration and other costs, one-time gain related to acquisitions, cost-elimination expenses, the impact of costs primarily | |||||||||||
associated with workforce optimization efforts in response to the Covid-19 pandemic, costs associated with certain transformation initiatives that will allow the company to reduce costs, streamline operations and support future growth, and other non-recurring costs. | |||||||||||
Income Statement History | |||||||||||
(in millions, except per share data) | |||||||||||
Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | 2020 | Q1 2021 | |
GAAP CONSOLIDATED INCOME STATEMENT | |||||||||||
Fee revenue | 2,428.7 | 2,849.5 | 2,910.5 | 3,672.2 | 11,860.9 | 2,693.3 | 2,256.0 | 2,528.5 | 3,413.0 | 10,890.8 | 2,684.0 |
Client reimbursed employee & other costs | 646.5 | 684.4 | 721.0 | 767.1 | 2,819.0 | 738.0 | 731.7 | 720.0 | 710.0 | 2,899.7 | 675.0 |
Total net revenue | 3,075.2 | 3,533.9 | 3,631.5 | 4,439.3 | 14,679.9 | 3,431.3 | 2,987.7 | 3,248.5 | 4,123.0 | 13,790.5 | 3,359.0 |
Pass through costs also recognized as revenue | 2,060.3 | 2,180.2 | 2,293.6 | 2,680.1 | 9,214.2 | 2,457.9 | 2,393.7 | 2,396.6 | 2,787.5 | 10,035.7 | 2,579.9 |
Total revenue | 5,135.5 | 5,714.1 | 5,925.1 | 7,119.4 | 23,894.1 | 5,889.2 | 5,381.4 | 5,645.1 | 6,910.5 | 23,826.2 | 5,938.9 |
Cost of revenue | 4,022.0 | 4,445.8 | 4,687.3 | 5,533.8 | 18,688.9 | 4,712.7 | 4,399.5 | 4,564.6 | 5,370.8 | 19,047.6 | 4,719.5 |
Operating, administrative and other | 792.9 | 877.4 | 809.6 | 956.1 | 3,436.0 | 790.1 | 770.8 | 794.2 | 951.1 | 3,306.2 | 828.3 |
Depreciation and amortization | 105.8 | 106.5 | 111.6 | 115.4 | 439.3 | 113.8 | 116.4 | 127.7 | 143.8 | 501.7 | 122.1 |
Asset impairments | 89.0 | - 0 | - 0 | 0.8 | 89.8 | 75.2 | -0 | -0 | 13.5 | 88.7 | -0 |
Total costs and expenses | 5,009.7 | 5,429.7 | 5,608.5 | 6,606.1 | 22,654.0 | 5,691.8 | 5,286.7 | 5,486.5 | 6,479.2 | 22,944.2 | 5,669.9 |
Gain (loss) on disposition of real estate | 19.2 | - 0 | - 0 | 0.5 | 19.7 | 22.8 | (0.5) | 52.8 | 12.7 | 87.8 | 0.2 |
- 0 | - 0 | ||||||||||
Operating income | 145.0 | 284.4 | 316.6 | 513.8 | 1,259.8 | 220.2 | 94.2 | 211.4 | 444.0 | 969.8 | 269.2 |
- 0 | - 0 | ||||||||||
Equity income from unconsolidated subsidiaries | 72.7 | 21.8 | 25.8 | 40.7 | 161.0 | 20.6 | 19.5 | 32.4 | 53.7 | 126.2 | 83.5 |
Other income (loss) | 20.8 | 4.3 | 0.9 | 2.7 | 28.7 | (0.2) | 5.2 | 7.9 | 4.4 | 17.3 | 2.7 |
Interest expense, net of interest income | 21.2 | 24.6 | 21.8 | 18.0 | 85.6 | 16.0 | 18.0 | 17.8 | 16.0 | 67.8 | 10.1 |
Write-off of financing costs on extinguished debt | 2.6 | - 0 | - 0 | - 0 | 2.6 | -0 | -0 | -0 | 75.6 | 75.6 | -0 |
Income before provision for income taxes | 214.7 | 285.9 | 321.5 | 539.2 | 1,361.3 | 224.7 | 100.9 | 233.9 | 410.4 | 969.9 | 345.3 |
Provision for income taxes | 43.9 | 62.5 | 63.5 | (99.9) | 70.0 | 51.2 | 18.8 | 49.1 | 95.1 | 214.2 | 76.3 |
Tax rate (1) (2) | 21.1% | 21.8% | 19.8% | -18.6% | 5.2% | 22.9% | 18.7% | 21.0% | 23.2% | 22.1% | 22.1% |
Net income | 170.8 | 223.4 | 258.0 | 639.1 | 1,291.3 | 173.5 | 82.1 | 184.8 | 315.3 | 755.7 | 269.0 |
Less: Net income (loss) attributable to non-controlling interests | 6.4 | (0.3) | 1.4 | 1.5 | 9.0 | 1.3 | 0.2 | 0.7 | 1.6 | 3.8 | 2.8 |
Net income attributable to CBRE Group, Inc. | 164.4 | 223.7 | 256.6 | 637.6 | 1,282.3 | 172.2 | 81.9 | 184.1 | 313.7 | 751.9 | 266.2 |
Add: | |||||||||||
Interest expense, net of interest income | 21.2 | 24.6 | 21.8 | 18.1 | 85.7 | 16.0 | 18.0 | 17.8 | 16.0 | 67.8 | 10.1 |
Write-off of financing costs on extinguished debt | 2.6 | -0 | -0 | - 0 | 2.6 | -0 | -0 | -0 | 75.6 | 75.6 | -0 |
Provision for income taxes | 43.9 | 62.5 | 63.5 | (100.0) | 69.9 | 51.2 | 18.8 | 49.1 | 95.1 | 214.2 | 76.3 |
Depreciation and amortization | 105.8 | 106.5 | 111.6 | 115.4 | 439.3 | 113.8 | 116.4 | 127.7 | 143.8 | 501.7 | 122.1 |
Asset impairments | 89.0 | -0 | -0 | 0.8 | 89.8 | 75.2 | -0 | -0 | 13.5 | 88.7 | -0 |
EBITDA | 426.9 | 417.3 | 453.5 | 671.9 | 1,969.6 | 428.4 | 235.1 | 378.7 | 657.7 | 1,699.9 | 474.7 |
Weighted avg. shares outstanding for diluted EPS | 340.2 | 340.5 | 341.1 | 340.3 | 340.3 | 339.7 | 337.4 | 337.7 | 338.8 | 338.4 | 339.6 |
Diluted EPS attributed to CBRE Group, Inc. | $ 0.48 | $ 0.66 | $ 0.75 | $ 1.87 | $ 3.77 | $ 0.51 | $ 0.24 | $ 0.55 | $ 0.93 | $ 2.22 | $ 0.78 |
ADJUSTMENTS TO GAAP CONSOLIDATED (4) | |||||||||||
Fee revenue | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Client reimbursed employee & other costs | |||||||||||
Total net revenue | |||||||||||
Pass through costs also recognized as revenue | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Total revenue | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
- 0 | - 0 | ||||||||||
Cost of revenue | (1.5) | (1.1) | - 0 | (6.4) | (9.0) | (4.8) | (8.1) | (16.8) | (27.1) | (56.8) | (0.7) |
Operating, administrative and other | (21.6) | (50.1) | (1.1) | (9.5) | (82.3) | 3.7 | (23.6) | (45.1) | (66.5) | (131.5) | (15.3) |
Depreciation and amortization | (22.2) | (19.6) | (19.3) | (19.9) | (81.0) | (20.1) | (18.5) | (18.7) | (39.4) | (96.7) | (18.4) |
Asset impairments | (89.0) | - 0 | - 0 | (0.8) | (89.8) | (75.2) | -0 | -0 | (13.5) | (88.7) | -0 |
Total costs and expenses | (134.3) | (70.8) | (20.4) | (36.6) | (262.1) | (96.4) | (50.2) | (80.6) | (146.5) | (373.7) | (34.4) |
Gain on disposition of real estate | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Operating income | 134.3 | 70.8 | 20.4 | 36.6 | 262.1 | 96.4 | 50.2 | 80.6 | 146.5 | 373.7 | 34.4 |
- 0 | - 0 | ||||||||||
Equity income from unconsolidated subsidiaries | - 0 | - 0 | - 0 | 2.9 | 2.9 | 1.0 | 0.5 | 1.1 | 1.6 | 4.2 | 0.4 |
Other income (loss) | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Interest expense, net of interest income | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Write-off of financing costs on extinguished debt | (2.6) | - 0 | - 0 | - 0 | (2.6) | - 0 | - 0 | - 0 | (75.6) | (75.6) | - 0 |
Income before provision for income taxes | 136.9 | 70.8 | 20.4 | 39.5 | 267.6 | 97.2 | 50.7 | 81.8 | 223.8 | 453.5 | 34.8 |
Provision for income taxes | 33.8 | 17.4 | 7.2 | 228.4 | 286.8 | 15.3 | 14.9 | 20.9 | 46.8 | 97.9 | 8.5 |
Tax rate (1) (2) | 24.7% | 24.6% | 35.3% | 578.2% | 107.2% | 15.7% | 29.4% | 25.6% | 20.9% | 21.6% | 24.4% |
Net income | 103.1 | 53.4 | 13.2 | (188.9) | (19.2) | 81.9 | 35.8 | 60.9 | 177.0 | 355.6 | 26.3 |
Less: Net income attributable to non-controlling interests | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | ||
Adjustments to net income attributable to CBRE Group, Inc. | 103.1 | 53.4 | 13.2 | (188.9) | (19.2) | 81.9 | 35.8 | 60.9 | 177.0 | 355.6 | 26.3 |
Add: | |||||||||||
Interest expense, net of interest income | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | ||
Provision for income taxes | 33.8 | 17.5 | 7.2 | 228.4 | 286.9 | 15.3 | 14.9 | 20.9 | 46.8 | 97.9 | 8.5 |
Write-off of financing costs on extinguished debt | (2.6) | - 0 | - 0 | - 0 | (2.6) | - 0 | - 0 | - 0 | (75.6) | (75.6) | - 0 |
Depreciation and amortization | (22.2) | (19.6) | (19.4) | (19.9) | (81.1) | (20.1) | (18.5) | (18.7) | (39.4) | (96.7) | (18.4) |
Asset impairments | (89.0) | - 0 | - 0 | (0.8) | (89.8) | (75.2) | - 0 | - 0 | (13.5) | (88.7) | - 0 |
Adjustments To EBITDA | 23.1 | 51.3 | 1.0 | 18.8 | 113.4 | 1.9 | 32.2 | 63.1 | 95.3 | 192.5 | 16.4 |
Weighted avg. shares outstanding for diluted EPS | 340.2 | 340.5 | 341.1 | 340.3 | 340.3 | 339.7 | 337.4 | 337.7 | 338.8 | 338.4 | 339.6 |
Adjustments to diluted EPS attributed to CBRE Group, Inc. | $ 0.30 | $ 0.16 | $ 0.04 | $ (0.56) | $ (0.06) | $ 0.24 | $ 0.11 | $ 0.18 | $ 0.52 | $ 1.05 | $ 0.08 |
ADJUSTED CONSOLIDATED INCOME STATEMENT | |||||||||||
Fee revenue | 2,428.7 | 2,849.5 | 2,910.5 | 3,672.2 | 11,860.9 | 2,693.3 | 2,256.0 | 2,528.5 | 3,413.0 | 10,890.8 | 2,684.0 |
Client reimbursed employee & other costs | 646.5 | 684.4 | 721.0 | 767.1 | 2,819.0 | 738.0 | 731.7 | 720.0 | 710.0 | 2,899.7 | 675.0 |
Total net revenue | 3,075.2 | 3,533.9 | 3,631.5 | 4,439.3 | 14,679.9 | 3,431.3 | 2,987.7 | 3,248.5 | 4,123.0 | 13,790.5 | 3,359.0 |
Pass through costs also recognized as revenue | 2,060.3 | 2,180.2 | 2,293.6 | 2,680.1 | 9,214.2 | 2,457.9 | 2,393.7 | 2,396.6 | 2,787.5 | 10,035.7 | 2,579.9 |
Total revenue | 5,135.5 | 5,714.1 | 5,925.1 | 7,119.4 | 23,894.1 | 5,889.2 | 5,381.4 | 5,645.1 | 6,910.5 | 23,826.2 | 5,938.9 |
Cost of revenue | 4,020.5 | 4,444.7 | 4,687.3 | 5,527.4 | 18,679.9 | 4,707.9 | 4,391.4 | 4,547.7 | 5,343.7 | 18,990.7 | 4,718.8 |
Operating, administrative and other | 771.3 | 827.3 | 808.5 | 946.6 | 3,353.7 | 793.8 | 747.2 | 749.1 | 884.6 | 3,174.7 | 813.0 |
Depreciation and amortization | 83.6 | 86.9 | 92.3 | 95.5 | 358.3 | 93.7 | 97.9 | 109.0 | 104.4 | 405.0 | 103.7 |
Asset impairments | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Total costs and expenses | 4,875.4 | 5,358.9 | 5,588.1 | 6,569.5 | 22,391.9 | 5,595.4 | 5,236.5 | 5,405.8 | 6,332.7 | 22,570.4 | 5,635.5 |
Gain (loss) on disposition of real estate | 19.2 | - 0 | - 0 | 0.5 | 19.7 | 22.8 | (0.5) | 52.8 | 12.7 | 87.8 | 0.2 |
- 0 | - 0 | ||||||||||
Operating income | 279.3 | 355.2 | 337.0 | 550.4 | 1,521.9 | 316.6 | 144.4 | 292.1 | 590.5 | 1,343.6 | 303.6 |
- 0 | - 0 | - 0 | - 0 | ||||||||
Equity income from unconsolidated subsidiaries | 72.7 | 21.8 | 25.8 | 43.6 | 163.9 | 21.6 | 20.0 | 33.5 | 55.3 | 130.4 | 83.9 |
Other income (loss) | 20.8 | 4.3 | 0.9 | 2.7 | 28.7 | (0.2) | 5.2 | 7.9 | 4.4 | 17.3 | 2.7 |
Interest expense, net of interest income | 21.2 | 24.6 | 21.8 | 18.0 | 85.6 | 16.0 | 18.0 | 17.8 | 16.0 | 67.8 | 10.1 |
Income before provision for income taxes | 351.6 | 356.7 | 341.9 | 578.7 | 1,628.9 | 322.0 | 151.6 | 315.7 | 634.2 | 1,423.5 | 380.1 |
Provision for income taxes | 77.7 | 79.9 | 70.7 | 128.5 | 356.8 | 66.5 | 33.7 | 70.0 | 141.9 | 312.1 | 84.8 |
Tax rate (1) (2) | 22.5% | 22.4% | 20.8% | 22.3% | 22.0% | 20.7% | 22.3% | 22.2% | 22.4% | 21.9% | 22.3% |
Net income | 273.9 | 276.8 | 271.2 | 450.2 | 1,272.1 | 255.5 | 117.9 | 245.7 | 492.3 | 1,111.4 | 295.3 |
Less: Net income (loss) attributable to non-controlling interests | 6.4 | (0.3) | 1.4 | 1.5 | 9.0 | 1.3 | 0.2 | 0.7 | 1.6 | 3.8 | 2.8 |
Adjusted net income attributable to CBRE Group, Inc. | 267.5 | 277.1 | 269.8 | 448.7 | 1,263.1 | 254.2 | 117.7 | 245.0 | 490.7 | 1,107.6 | 292.5 |
Add: | |||||||||||
Interest expense, net of interest income | 21.2 | 24.6 | 21.8 | 18.0 | 85.6 | 16.0 | 18.0 | 17.8 | 16.0 | 67.8 | 10.1 |
Provision for income taxes | 77.7 | 79.9 | 70.7 | 128.5 | 356.8 | 66.5 | 33.7 | 70.0 | 141.9 | 312.1 | 84.8 |
Depreciation and amortization | 83.6 | 86.9 | 92.3 | 95.5 | 358.3 | 93.7 | 97.9 | 109.0 | 104.4 | 405.0 | 103.7 |
Asset impairments | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 |
Adjusted EBITDA | 450.0 | 468.5 | 454.6 | 690.7 | 2,063.8 | 430.4 | 267.3 | 441.8 | 753.0 | 1,892.5 | 491.1 |
Weighted avg. shares outstanding for diluted EPS | 340.2 | 340.5 | 341.1 | 340.3 | 340.3 | 339.7 | 337.4 | 337.7 | 338.8 | 338.4 | 339.6 |
Diluted EPS attributed to CBRE Group, Inc. | $ 0.79 | $ 0.81 | $ 0.79 | $ 1.32 | $ 3.71 | $ 0.75 | $ 0.35 | $ 0.73 | $ 1.45 | $ 3.27 | $ 0.86 |
(1) Calculation of tax rate adjusts profit before taxes to remove the portion attributable to non-controlling interests as noted below: | |||||||||||
(2) Prior to Q3 2020, calculation of tax rate adjusts profit before taxes to remove the portion attributable to non-controlling interests. | |||||||||||
GAAP CONSOLIDATED INCOME STATEMENT | |||||||||||
Taxes (A) | 43.9 | 62.5 | 63.5 | (99.9) | 70.0 | 51.2 | 18.8 | 49.1 | 95.1 | 214.2 | 76.3 |
Profit Before Taxes | 214.7 | 285.9 | 321.5 | 539.2 | 1,361.3 | 224.7 | 100.9 | 233.9 | 410.4 | 969.9 | 345.3 |
Non-Controlling Interests | 6.4 | (0.3) | 1.4 | 1.5 | 9.0 | 1.3 | 0.2 | -0 | -0 | 1.5 | -0 |
Profit Before Taxes, excluding non-controlling interests (B) | 208.3 | 286.2 | 320.1 | 537.7 | 1,352.3 | 223.4 | 100.7 | 233.9 | 410.4 | 968.4 | 345.3 |
Effective Tax Rate (A/B) | 21.1% | 21.8% | 19.8% | -18.6% | 5.2% | 22.9% | 18.7% | 21.0% | 23.2% | 22.1% | 22.1% |
ADJUSTMENTS TO GAAP CONSOLIDATED | |||||||||||
Taxes (A) | 33.8 | 17.4 | 7.2 | 228.4 | 286.8 | 15.3 | 14.9 | 20.9 | 46.8 | 97.9 | 8.5 |
Profit Before Taxes | 136.9 | 70.8 | 20.4 | 39.5 | 267.6 | 97.2 | 50.7 | 81.8 | 223.8 | 453.5 | 34.8 |
Non-Controlling Interests | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 |
Profit Before Taxes, excluding non-controlling interests (B) | 136.9 | 70.8 | 20.4 | 39.5 | 267.6 | 97.2 | 50.7 | 81.8 | 223.8 | 453.5 | 34.8 |
Effective Tax Rate (A/B) | 24.7% | 24.6% | 35.3% | 578.2% | 107.2% | 15.7% | 29.4% | 25.6% | 20.9% | 21.6% | 24.4% |
ADJUSTED CONSOLIDATED INCOME STATEMENT | |||||||||||
Taxes (A) | 77.7 | 79.9 | 70.7 | 128.5 | 356.8 | 66.5 | 33.7 | 70.0 | 141.9 | 312.1 | 84.8 |
Profit Before Taxes | 351.6 | 356.7 | 341.9 | 578.7 | 1,628.9 | 322.0 | 151.6 | 315.7 | 634.2 | 1,423.5 | 380.1 |
Non-Controlling Interests | 6.4 | (0.3) | 1.4 | 1.5 | 9.0 | 1.3 | 0.2 | -0 | -0 | 1.5 | -0 |
Profit Before Taxes, excluding non-controlling interests (B) | 345.2 | 357.0 | 340.5 | 577.2 | 1,619.9 | 320.7 | 151.4 | 315.7 | 634.2 | 1,422.0 | 380.1 |
Effective Tax Rate (A/B) | 22.5% | 22.4% | 20.8% | 22.3% | 22.0% | 20.7% | 22.3% | 22.2% | 22.4% | 21.9% | 22.3% |
N/M = Not Meaningful | |||||||||||
(3) Tax rate for Q4 2017 and FY 2017 on a GAAP basis is unusually high given one-time impact associated with U.S. tax reform. | |||||||||||
(4) Adjustments include non-cash depreciation & amortization expense related to certain assets attributable to acquisitions, non-cash asset impairments, costs associated with our reorganization, including cost-savings initiatives, costs associated with workforce optimization efforts in response to the Covid-19 pandemic, costs associated with certain transformation initiatives that will allow the company to reduce costs, streamline operations and support future growth, certain carried interest compensation expense (reversal) to align with the timing of associated revenue, integration and other costs (gain) related to acquisitions, cost-elimination expenses and other non-recurring costs, as well as the associated impact to provision for income taxes for these charges. For Q4 2017, FY 2017, Q1 2018, Q4 2018 and FY 2018 also includes removal of tax impact associated with U.S. tax reform. |
Balance Sheet History | |||||||||||
($ in millions) | |||||||||||
Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | 2020 | Q1 2021 | |
ASSETS | |||||||||||
Cash and cash equivalents | 605.0 | 535.6 | 577.5 | 971.8 | 971.8 | 628.4 | 1,214.2 | 1,481.9 | 1,896.2 | 1,896.2 | 1,910.3 |
Restricted cash | 82.7 | 77.6 | 124.8 | 122.0 | 122.0 | 104.2 | 99.5 | 164.6 | 143.1 | 143.1 | 91.4 |
Receivables, net | 3,801.5 | 4,001.0 | 4,057.8 | 4,466.7 | 4,466.7 | 4,262.3 | 4,134.8 | 3,998.0 | 4,394.9 | 4,394.9 | 4,232.6 |
Warehouse receivables and advance warehouse funding (1) | 1,548.2 | 1,365.9 | 1,364.6 | 993.0 | 993.0 | 1,273.3 | 765.1 | 1,211.9 | 1,411.2 | 1,411.2 | 686.3 |
Contract assets | 412.4 | 465.6 | 510.4 | 529.8 | 529.8 | 530.7 | 478.5 | 459.8 | 471.8 | 471.8 | 449.2 |
Income taxes receivable | 58.3 | 53.8 | 38.6 | 233.0 | 233.0 | 117.7 | 137.5 | 102.2 | 137.3 | 137.3 | 108.8 |
Property and equipment, net | 730.4 | 746.5 | 782.0 | 836.2 | 836.2 | 800.9 | 824.8 | 818.3 | 815.0 | 815.0 | 774.3 |
Operating lease assets (2) | 938.7 | 949.2 | 980.3 | 998.0 | 998.0 | 997.8 | 1,063.5 | 1,058.0 | 1,020.4 | 1,020.4 | 1,000.7 |
Goodwill and other intangibles, net | 5,002.5 | 4,995.1 | 4,952.9 | 5,133.0 | 5,133.0 | 5,013.5 | 5,026.3 | 5,078.2 | 5,189.5 | 5,189.5 | 5,175.2 |
Investments in and advances to unconsolidated subs | 228.4 | 307.3 | 328.6 | 426.7 | 426.7 | 422.9 | 386.1 | 392.6 | 452.3 | 452.3 | 682.6 |
Investments held in trust - special purpose acquisition company | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | 402.5 | 402.5 | 402.5 |
Other assets, net | 1,284.9 | 1,221.5 | 1,323.4 | 1,487.0 | 1,487.0 | 1,528.6 | 1,570.1 | 1,581.6 | 1,704.9 | 1,704.9 | 1,734.8 |
Total Assets | 14,693.0 | 14,719.1 | 15,040.9 | 16,197.2 | 16,197.2 | 15,680.3 | 15,700.4 | 16,347.1 | 18,039.1 | 18,039.1 | 17,248.7 |
LIABILITIES | |||||||||||
Current liabilities, ex-debt | 3,924.8 | 4,131.3 | 4,458.0 | 5,283.6 | 5,283.6 | 4,615.7 | 4,447.5 | 4,764.2 | 5,544.6 | 5,544.6 | 4,883.7 |
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 1,561.2 | 1,350.0 | 1,348.6 | 977.2 | 977.2 | 1,258.8 | 753.9 | 1,191.8 | 1,384.0 | 1,384.0 | 675.5 |
Revolving credit facility | 336.0 | 230.0 | 52.0 | -0 | -0 | -0 | 451.0 | -0 | -0 | -0 | -0 |
Senior term loans, net | 744.0 | 750.3 | 731.8 | 744.6 | 744.6 | 737.6 | 745.9 | 765.7 | 785.7 | 785.7 | 766.3 |
Senior notes, net | 1,015.8 | 1,016.0 | 1,016.3 | 1,016.6 | 1,016.6 | 1,017.0 | 1,017.2 | 1,017.5 | 594.5 | 594.5 | 594.8 |
Senior notes 2.5%, net | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | 487.3 |
Other debt | 3.0 | 2.9 | 6.6 | 7.1 | 7.1 | 7.7 | 8.6 | 6.6 | 6.8 | 6.8 | 6.8 |
Operating lease liabilities (2) | 1,154.7 | 1,169.7 | 1,202.7 | 1,226.4 | 1,226.4 | 1,228.9 | 1,310.4 | 1,314.7 | 1,325.3 | 1,325.3 | 1,297.5 |
Other long-term liabilities | 749.3 | 678.4 | 665.9 | 668.6 | 668.6 | 645.1 | 680.9 | 692.3 | 892.5 | 892.5 | 881.0 |
Total Liabilities | 9,488.8 | 9,328.6 | 9,481.9 | 9,924.1 | 9,924.1 | 9,510.8 | 9,415.4 | 9,752.8 | 10,533.4 | 10,533.4 | 9,592.9 |
Non-controlling interest subject to redemption | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | 385.6 | 385.6 | 384.4 |
EQUITY | |||||||||||
CBRE Group, Inc. stockholders' equity | 5,089.4 | 5,346.6 | 5,511.8 | 6,232.7 | 6,232.7 | 6,129.3 | 6,243.9 | 6,553.1 | 7,078.3 | 7,078.3 | 7,230.4 |
Non-controlling interests | 114.8 | 43.9 | 47.2 | 40.4 | 40.4 | 40.2 | 41.1 | 41.2 | 41.8 | 41.8 | 41.0 |
TOTAL EQUITY | 5,204.2 | 5,390.5 | 5,559.0 | 6,273.1 | 6,273.1 | 6,169.5 | 6,285.0 | 6,594.3 | 7,120.1 | 7,120.1 | 7,271.4 |
TOTAL LIABILITIES AND EQUITY | 14,693.0 | 14,719.1 | 15,040.9 | 16,197.2 | 16,197.2 | 15,680.3 | 15,700.4 | 16,347.1 | 18,039.1 | 18,039.1 | 17,248.7 |
(1) Represents loan receivables, the majority of which are offset by borrowings under related warehouse line of credit facilities. | |||||||||||
(2) Reflects assets and liabilities recorded as a result of adopting Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)" on January 1, 2019 prospectively using the optional transitional method associated with no | |||||||||||
adjustment to comparative period financial statements presented for prior periods. |
Cash Flow History | |||||||||||
($ in millions) | |||||||||||
Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | YTD 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | YTD 2020 | Q1 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | 170.8 | 223.4 | 258.1 | 639.1 | 1,291.4 | 173.5 | 82.1 | 184.8 | 315.3 | 755.7 | 269.0 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | 105.8 | 106.5 | 111.6 | 115.4 | 439.3 | 113.8 | 116.4 | 127.7 | 143.8 | 501.7 | 122.1 |
Amortization and write-off of financing costs on extinguished debt | 4.2 | 1.5 | 1.5 | 1.5 | 8.7 | 1.5 | 1.6 | 1.6 | 78.1 | 82.8 | 1.6 |
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets | (53.5) | (60.8) | (76.8) | (55.6) | (246.7) | (52.4) | (53.3) | (73.8) | (118.5) | (298.0) | (72.0) |
Asset impairments | 89.0 | - 0 | - 0 | 0.8 | 89.8 | 75.2 | - 0 | - 0 | 13.5 | 88.7 | - 0 |
Gain associated with remeasuring our investment in a joint venture entity to fair value at the date we acquired the remaining interest | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Net realized and unrealized (gains) losses, primarily from investments | (20.9) | (4.4) | (0.9) | (2.7) | (28.9) | 0.2 | (5.2) | (7.9) | (4.4) | (17.3) | (2.7) |
(Recovery of) provision for doubtful accounts | 1.9 | 9.6 | 6.6 | 2.3 | 20.4 | 9.1 | 20.8 | 19.6 | (5.1) | 44.4 | 0.7 |
Net compensation expense (reversal) for equity awards | 29.3 | 36.3 | 33.4 | 28.8 | 127.8 | (1.2) | 20.9 | 22.1 | 18.6 | 60.4 | 35.8 |
Equity income from unconsolidated subsidiaries | (72.7) | (21.8) | (25.8) | (40.7) | (161.0) | (20.6) | (19.5) | (32.4) | (53.7) | (126.2) | (83.5) |
Distribution of earnings from unconsolidated subsidiaries | 77.2 | 20.4 | 48.0 | 53.4 | 199.0 | 29.2 | 23.5 | 51.1 | 52.2 | 156.0 | 33.0 |
Proceeds from sale of mortgage loans | 4,453.8 | 5,645.5 | 5,687.5 | 4,018.2 | 19,805.0 | 3,595.6 | 3,825.5 | 4,144.2 | 9,372.2 | 20,937.5 | 4,643.6 |
Origination of mortgage loans | (4,646.3) | (5,444.0) | (5,291.5) | (4,008.1) | (19,389.9) | (3,859.4) | (3,303.3) | (4,564.5) | (9,540.9) | (21,268.1) | (3,909.3) |
(Decrease) increase in warehouse lines of credit | 232.4 | (211.2) | (1.4) | (371.4) | (351.6) | 281.7 | (505.0) | 437.9 | 192.2 | 406.8 | (708.5) |
(Increase) decrease in advance warehouse funding | - 0 | - 0 | (376.7) | 376.7 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Tenant concessions received | 3.4 | 9.4 | 5.4 | 2.9 | 21.1 | 13.3 | 10.1 | 5.2 | 19.4 | 48.0 | 1.6 |
Purchase of equity securities | (62.1) | (8.1) | (11.2) | (1.6) | (83.0) | (3.6) | (3.0) | (2.3) | (2.2) | (11.1) | (2.4) |
Proceeds from sale of equity securities | 25.7 | 12.8 | 6.8 | 1.6 | 46.9 | 4.9 | 4.0 | 2.3 | 2.5 | 13.7 | 3.0 |
(Increase) decrease in real estate under development | (3.4) | - 0 | - 0 | 34.8 | 31.4 | 7.7 | (7.0) | (68.9) | (37.4) | (105.6) | (15.9) |
Decrease (increase) in receivables, prepaid expenses and other assets (including contract and lease assets) | (168.9) | (290.1) | (185.6) | (176.5) | (821.1) | 52.8 | 223.3 | 334.0 | (239.1) | 371.0 | 161.2 |
(Decrease) increase in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) | (33.9) | 197.5 | (4.8) | 147.9 | 306.7 | (27.1) | (85.1) | 13.2 | 204.5 | 105.5 | (245.5) |
(Decrease) increase in compensation and employee benefits payable and accrued bonus and profit sharing | (510.4) | (18.3) | 334.2 | 439.5 | 245.0 | (606.0) | (210.6) | 265.7 | 450.8 | (100.1) | (469.2) |
(Increase) decrease in net income taxes receivable/payable | (11.3) | (85.9) | (35.3) | (141.9) | (274.4) | 108.6 | 16.8 | (6.6) | 54.8 | 173.6 | 41.6 |
Other operating activities, net | (2.7) | (19.0) | (15.1) | (15.7) | (52.5) | (25.6) | - 0 | 13.2 | 23.8 | 11.4 | 2.4 |
Net cash (used in) provided by operating activities | (392.6) | 99.3 | 468.0 | 1,048.7 | 1,223.4 | (128.8) | 153.0 | 866.2 | 940.4 | 1,830.8 | (193.4) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Capital expenditures (1) | (57.0) | (67.2) | (71.8) | (97.5) | (293.5) | (62.2) | (71.9) | (56.4) | (76.1) | (266.6) | (29.6) |
Acquisition of businesses, including net assets acquired, intangibles and goodwill, net of cash acquired | (2.1) | - 0 | (12.7) | (341.1) | (355.9) | (25.9) | - 0 | - 0 | (1.9) | (27.8) | (2.7) |
Contributions to unconsolidated subsidiaries | (23.6) | (11.6) | (49.5) | (21.3) | (106.0) | (32.2) | (19.0) | (20.9) | (74.3) | (146.4) | (168.4) |
Distributions from unconsolidated subsidiaries | 6.0 | 4.3 | 10.7 | 12.3 | 33.3 | 19.0 | 45.0 | 2.4 | 22.3 | 88.7 | 6.8 |
Purchase of cash and cash equivalents held in trust | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Other investing activities, net | 2.8 | 0.3 | (0.3) | (1.7) | 1.1 | 9.1 | 2.2 | 4.4 | (5.2) | 10.5 | - 0 |
Net cash used in investing activities | (73.9) | (74.2) | (123.6) | (449.3) | (721.0) | (92.2) | (43.7) | (70.5) | (135.2) | (341.6) | (193.9) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from senior term loans | 300.0 | - 0 | - 0 | - 0 | 300.0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Repayment of senior term loans | (300.0) | - 0 | - 0 | - 0 | (300.0) | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Proceeds from revolving credit facility | 507.0 | 1,089.0 | 1,087.0 | 926.0 | 3,609.0 | 331.7 | 504.0 | - 0 | - 0 | 835.7 | - 0 |
Repayment of revolving credit facility | (171.0) | (1,195.0) | (1,265.0) | (978.0) | (3,609.0) | (331.7) | (53.0) | (451.0) | - 0 | (835.7) | - 0 |
Repayment of 5.25% senior notes (including premium) | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | (499.7) | (499.7) | - 0 |
Establishment of trust account for special purpose acquisition company | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | (402.5) | (402.5) | - 0 |
Sales of non-controlling interest - special purpose acquisition company | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | 393.7 | 393.7 | - 0 |
Proceeds from initial public offering, net of costs incurred | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Proceeds from notes payable on real estate | - 0 | 4.1 | 1.1 | 1.5 | 6.7 | 1.7 | 21.0 | 17.6 | 50.3 | 90.6 | 23.7 |
Proceeds from issuance of 2.5% senior notes | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | 492.3 |
Repayments of notes payable on real estate | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | (24.7) | - 0 | (24.7) | - 0 |
Repayment of 5.00% senior notes (including premium) | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Repayment of debt assumed in acquisition of Telford Homes | - 0 | - 0 | - 0 | (110.7) | (110.7) | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Repayment of debt assumed in acquisition of FacilitySource | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Repurchase of common stock | (45.1) | - 0 | (49.0) | (51.0) | (145.1) | (50.0) | - 0 | - 0 | - 0 | (50.0) | (61.1) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (17.2) | (11.3) | (7.6) | (6.0) | (42.1) | (6.2) | (0.6) | (27.6) | (10.3) | (44.7) | (0.5) |
Units repurchased for payment of taxes on equity awards | (9.2) | (0.4) | (6.9) | (1.9) | (18.4) | (36.9) | (0.5) | (4.3) | (2.1) | (43.8) | (34.9) |
Non-controlling interest contributions | 40.8 | 1.2 | 4.5 | - 0 | 46.6 | 0.6 | 0.8 | 0.5 | 0.3 | 2.2 | 0.1 |
Non-controlling interest distributions | (1.4) | (1.2) | (1.2) | (0.2) | (4.0) | (0.5) | (0.6) | (1.3) | (1.9) | (4.3) | (2.7) |
Payment of financing costs | - 0 | - 0 | |||||||||
Other financing activities, net | (3.9) | (0.5) | (0.7) | 0.2 | (5.0) | (10.1) | (10.8) | (9.1) | (12.1) | (42.1) | (14.9) |
Net cash provided by (used in) financing activities | 300.0 | (114.1) | (237.8) | (220.1) | (272.0) | (101.4) | 460.3 | (499.9) | (484.3) | (625.3) | 402.0 |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (9.8) | 14.5 | (17.4) | 12.1 | (0.6) | (38.6) | 11.5 | 37.1 | 71.6 | 81.6 | (52.2) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (176.3) | (74.5) | 89.2 | 391.4 | 229.8 | (361.0) | 581.1 | 332.9 | 392.5 | 945.5 | (37.5) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 863.9 | 687.6 | 613.1 | 702.3 | 863.9 | 1,093.7 | 732.7 | 1,313.8 | 1,646.7 | 1,093.7 | 2,039.2 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 687.6 | 613.1 | 702.3 | 1,093.7 | 1,093.7 | 732.7 | 1,313.8 | 1,646.7 | 2,039.2 | 2,039.2 | 2,001.7 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | 33.6 | 12.9 | 33.7 | 6.5 | 86.7 | 27.3 | 3.8 | 29.3 | 7.1 | 67.5 | 15.1 |
Income tax payments (refunds), net | 54.2 | 154.6 | 93.9 | 62.3 | 365.0 | (55.9) | 2.1 | 57.9 | 47.6 | 51.7 | 38.5 |
(1) In the fourth quarter of 2019, we changed our cash flow presentation (retroactive to January 1, 2019) to reflect internal capital expenditure spend within the investing section of the cash flow statement (previously such spend was included within the operating section of the cash flow statement). Accordingly, capital expenditures for the first three quarters of 2019 have been reclassified to conform with our new presentation. Internal capital expenditures prior to 2019 were deemed immaterial and accordingly, presentation for such years was not adjusted. |
Reconciliation of net income to adjusted EBITDA | |||||||||||
($ in millions) | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | 2020 | Q1 2021 |
Net income attributable to CBRE Group, Inc. | $ 164.4 | $ 223.7 | $ 256.6 | $ 637.6 | $ 1,282.3 | $ 172.2 | $ 81.9 | $ 184.1 | $ 313.7 | $ 751.9 | $ 266.2 |
Add: | |||||||||||
Depreciation and amortization | 105.8 | 106.5 | 111.6 | 115.4 | 439.3 | 113.8 | 116.4 | 127.7 | 143.8 | 501.7 | 122.1 |
Asset impairments | 89.0 | -0 | -0 | 0.8 | 89.8 | 75.2 | - 0 | - 0 | 13.5 | 88.7 | - 0 |
Interest expense, net of interest income | 21.2 | 24.6 | 21.8 | 18.0 | 85.6 | 16.0 | 18.0 | 17.8 | 16.0 | 67.8 | 10.1 |
Provision for income taxes | 43.9 | 62.5 | 63.5 | (99.9) | 70.0 | 51.2 | 18.8 | 49.1 | 95.1 | 214.2 | 76.3 |
Write-off of financing costs on extinguished debt | 2.6 | -0 | -0 | -0 | 2.6 | - 0 | - 0 | - 0 | 75.6 | 75.6 | - 0 |
EBITDA | 426.9 | 417.3 | 453.5 | 671.9 | 1,969.6 | 428.4 | 235.1 | 378.7 | 657.7 | 1,699.9 | 474.7 |
Adjustments: | |||||||||||
One-time gain associated with remeasuring an investment in | |||||||||||
unconsolidated subsidiary to fair value as of the date the | |||||||||||
remaining controlling interest was acquired | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 |
Costs associated with our reorganization, including cost-savings initiatives | 15.8 | 33.8 | -0 | -0 | 49.6 | -0 | -0 | -0 | -0 | -0 | -0 |
Costs incurred in connection with litgation settlement | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 | -0 |
Integration and other costs related to acquisitions | -0 | 9.1 | 4.6 | 1.7 | 15.4 | 0.8 | 0.2 | 0.5 | 0.2 | 1.7 | -0 |
Costs associated with workforce optimization efforts | -0 | -0 | -0 | -0 | -0 | -0 | 37.6 | -0 | -0 | 37.6 | -0 |
Costs associated with transformation initiatives | -0 | -0 | -0 | -0 | -0 | -0 | -0 | 55.4 | 99.8 | 155.2 | -0 |
Costs incurred related to legal entity restructuring | -0 | -0 | -0 | 6.9 | 6.9 | 3.2 | 0.7 | 1.1 | 4.4 | 9.4 | -0 |
Impact of fair value adjustments to real estate assets acquired in the Telford | |||||||||||
Acquisition (purchase accounting) that were sold in period | -0 | -0 | -0 | 9.3 | 9.3 | 5.8 | 1.2 | 2.3 | 2.3 | 11.6 | 1.1 |
Carried interest incentive compensation (reversal) expense | |||||||||||
to align with the timing of associated revenue | 7.3 | 8.3 | (3.4) | 0.8 | 13.0 | (7.8) | (7.5) | 3.8 | (11.4) | (22.9) | 15.3 |
Adjusted EBITDA | 450.0 | 468.5 | 454.7 | 690.6 | 2,063.8 | 430.4 | 267.3 | 441.8 | 753.0 | 1,892.5 | 491.1 |
Non-GAAP Financial Measures | |
The following measures are considered "non-GAAP financial measures" under SEC guidelines: | |
(i) | Net revenue |
(ii) | Adjusted revenue for the Real Estate Investments segment |
(iii) | Net income attributable to CBRE Group, Inc., as adjusted (which we also refer to as "adjusted net income") |
(iv) | Diluted income per share attributable to CBRE Group, Inc. shareholders, as adjusted (which we also refer to as "adjusted earnings per share" or "adjusted EPS") |
(v) | Adjusted EBITDA |
(vi) | Segment operating profit and segment operating profit on revenue and net revenue margins |
(vii) | Free cash flow |
These measures are not recognized measurements under United States generally accepted accounting principles, or "GAAP." When analyzing our operating performance, investors should use them in addition to, and not as an alternative for, their most directly comparable financial measure calculated and presented in accordance with GAAP. Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies. | |
Our management generally uses these non-GAAP financial measures to evaluate operating performance and for other discretionary purposes. The company believes that these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance because they eliminate the impact of selected charges that may obscure trends in the underlying performance of our business. The company further uses certain of these measures, and believes that they are useful to investors, for purposes described below. | |
With respect to net revenue: net revenue is gross revenue less zero margin client reimbured costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients. We believe that investors may find this measure useful to analyze the company's overall financial performance because it excludes costs reimburable by clients that have no margin, and as such provides greater visibility into the underlying performance of our business. Prior to 2021, the company utilized fee revenue to analyze the overall financial performance which reflected gross revenue less both client reimbursed costs largely associated with employees that are dedicated to client facilities and subcontracted vendor work performed for clients with no or minimal margin. | |
With respect to adjusted revenue: the company believes that investors may find this measure useful to analyze the financial performance of our Real Estate Investments segment because it is more reflective of this segment's total operations. | |
With respect to adjusted net income, adjusted EPS, adjusted EBITDA, segment operating profit and segment operating profit on revenue and net revenue margins: the company believes that investors may find these measures useful in evaluating our operating performance compared to that of other companies in our industry because their calculations generally eliminate the accounting effects of acquisitions, which would include impairment charges of goodwill and intangibles created from acquisitions-and in the case of adjusted EBITDA, segment operating profit and segment operating profit on revenue and net revenue margins-the effects of financings and income tax and the accounting effects of capital spending. All of these measures and adjusted revenue may vary for different companies for reasons unrelated to overall operating performance. In the case of adjusted EBITDA and segment operating profit, this measure is not intended to be a measure of free cash flow for our management's discretionary use because it does not consider cash requirements such as tax and debt service payments. The adjusted EBITDA and segment operating profit measures calculated herein may also differ from the amounts calculated undersimilarly titled definitions in our credit facilities and debt instruments, which amounts are further adjusted to reflect certain other cash and non-cash charges and are used by us to determine compliance with financial covenants therein and our ability to engage in certain activities, such as incurring additional debt. The company also uses adjusted EBITDA, segment operating profit and adjusted EPS as significant components when measuring our operating performance under our employee incentive compensation programs. | |
With respect to free cash flow, the company believes that investors may find this measure useful to analyze the cash flow generated from operations after accounting for cash outflows to support operations and capital expenditures. With respect to net debt (net cash), the company believes that investors use this measure when calculating the company's net leverage ratio. |
ENTITY | |||||
Value | Must use for top level entities, i.e. CBRELoB, TotGeog. Use for US$ amounts for other entities that have functional currency other than USD. | ||||
ICP (Intercompany) | [ICP Top] | ||||
SCENARIO - ACTUAL | Actual | ||||
YEAR - ACTUAL | |||||
VIEW - (MTD or QTD) | |||||
VIEW - YTD | |||||
Period | Periodic = Month to Date; QTD = Quarter to Date | ||||
CUSTOM1 | TotLoB | Advisory | GWS | REI | YTD = Year to Date |
CUSTOM2 | [None] | ||||
CUSTOM3 (Currency Effect) | [None] | PriorYrFX | |||
CUSTOM4 | Normalized | TotSource | |||
Connection | CBREDev6 |
ENTITY | ||
Value | Must use for top level entities, i.e. CBRELoB, TotGeog. Use for US$ amounts for other entities that have functional currency other than USD. | |
ICP (Intercompany) | [ICP Top] | |
SCENARIO - ACTUAL | Plan | |
YEAR - ACTUAL | ||
VIEW - (MTD or QTD) | ||
VIEW - YTD | ||
Period | Periodic = Month to Date; QTD = Quarter to Date | |
CUSTOM1 | TotLoB | YTD = Year to Date |
CUSTOM2 | [None] | |
CUSTOM3 (Currency Effect) | [None] | PriorYrFX |
CUSTOM4 | Normalized | TotSource |
Connection | CBREDev6 |